Integration of AI is Reshaping the Business of Market Data Providers – New Burton Taylor Report
- Clients are influencing the deployment of AI-driven solutions, demanding more automation, precision, and actionable insights from data providers.
- AI will provide a path to greater production and variety of data, with Burton Taylor expecting AI to contribute 3.3% to the market data industry TAM by 2029, growing at a 56% CAGR to 2029.
- Burton Taylor estimates that AI will add an incremental $1.9 billion to market data providers’ revenues.
November 1st, 2024 – Artificial intelligence is affecting data products for both human and machine consumption, changing the dynamics of data use and demand, and internal operational processes. A new report from Burton Taylor International Consulting, part of TP ICAP’s Parameta Solutions, evaluates AI’s present and future influence on data consumption, the emergence of new data types, and exponential data growth.
“AI is being leveraged across the market data and capital markets value chain. Today POCs are exploring the next generation of AI for use in human and machine consumption of data. “AI is substantially impacting the market data business. It allows new levels of operational effectiveness in the processing of data and sets the stage for new types of data products that market participants will demand,” says Brad Bailey, Research Director at Burton Taylor. “AI in the capital markets will look very different by 2029.”
The future progression, however, will not be without its challenges to data providers, according to the report. “While AI offers significant benefits,” notes Bailey, “Market data providers face hurdles in areas such as data readiness, regulatory compliance, explainability, and intellectual property. These challenges require continuous investment in data governance, model transparency, and legal frameworks to ensure that AI is deployed responsibly and effectively.”
This new Burton Taylor report explores how the integration of AI is fundamentally reshaping the landscape for market data providers, driving innovations in data processing, analytics, and product delivery. Further, it looks at the way AI sets new standards for how financial data is consumed and utilized by enhancing data quality, automating workflows, and enabling real-time insights.
